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== Summary == == Summary ==
According to 2014 EU Anti-Corruption Report, Lithuania had the highest proportion of citizens who had paid bribes in the preceding 12 months of any EU country, with 95% of citizens considering corruption to be widespread and a major problem.<ref name="archive.org"/><ref name="archive.org1"/> In surveys of Lithuanian business people, corruption is highlighted as the main issue prohibiting economic development and international competitiveness.<ref>{{cite web|url=http://web.archive.org/web/20171113113335/http://www.ve.lt/naujienos/ekonomika/ekonomikos-naujienos/lietuvos-seselines-ekonomikos-varikliai---kontrabanda-ir-mokesciu-vengimas/|title=Lietuvos šešėlinės ekonomikos varikliai – kontrabanda ir mokesčių vengimas|date=13 November 2017|publisher=|accessdate=18 November 2017}}</ref> An 2016 investigation by Lithuanian government revealed that only 23% of Lithuanians would report corruption<ref>http://web.archive.org/web/20171129110725/https://www.stt.lt/documents/soc_tyrimai/LKZ_2016.pdf</ref>, and those who would not often believe that the corrupt individuals would not be punished.<ref name="archive.org4"/><ref name="auto"/> Lithuania has established a hotline for reporting corruption, but no major crimes have been reported in the first 5 years of its operation.<ref>{{cite web|url=http://web.archive.org/web/20171019160942/http://www.business-anti-corruption.com/country-profiles/lithuania|title=Lithuania Corruption Report|date=19 October 2017|publisher=}}</ref> Lithuania ranked 38th out of 176 countries in the 2016 ] published by ] (rising from 52nd place in 2009).<ref>{{Cite web|url=https://www.transparency.org/news/feature/corruption_perceptions_index_2016|title=Corruption Perception Index 2016|last=|first=|date=|website=|archive-url=|archive-date=|dead-url=|access-date=}}</ref> According to 2014 EU Anti-Corruption Report, Lithuania had the highest proportion of citizens who had paid bribes in the preceding 12 months of any EU country, with 95% of citizens considering corruption to be widespread and a major problem.<ref name="archive.org"/><ref name="archive.org1"/> In surveys of Lithuanian business people, corruption is highlighted as the main issue prohibiting economic development and international competitiveness.<ref>{{cite web|url=http://web.archive.org/web/20171113113335/http://www.ve.lt/naujienos/ekonomika/ekonomikos-naujienos/lietuvos-seselines-ekonomikos-varikliai---kontrabanda-ir-mokesciu-vengimas/|title=Lietuvos šešėlinės ekonomikos varikliai – kontrabanda ir mokesčių vengimas|date=13 November 2017|publisher=|accessdate=18 November 2017}}</ref> An 2016 investigation by Lithuanian government revealed that only 23% of Lithuanians would report corruption<ref>http://web.archive.org/web/20171129110725/https://www.stt.lt/documents/soc_tyrimai/LKZ_2016.pdf</ref>, and those who would not often believe that the corrupt individuals would not be punished.<ref name="archive.org4"/><ref name="auto"/> Same investigation from 2016 found that 73% of citizens experience same or increased corruption levels compared to 5 years ago. Lithuania has established a hotline for reporting corruption, but no major crimes have been reported in the first 5 years of its operation.<ref>{{cite web|url=http://web.archive.org/web/20171019160942/http://www.business-anti-corruption.com/country-profiles/lithuania|title=Lithuania Corruption Report|date=19 October 2017|publisher=}}</ref> Lithuania ranked 38th out of 176 countries in the 2016 ] published by ] (rising from 52nd place in 2009).<ref>{{Cite web|url=https://www.transparency.org/news/feature/corruption_perceptions_index_2016|title=Corruption Perception Index 2016|last=|first=|date=|website=|archive-url=|archive-date=|dead-url=|access-date=}}</ref>


Tax evasion is prevalent in the Lithuania and total tax revenues (inc. social security contributions) was at 27.5% of GDP in 2012, the lowest in the European Union. According to Lithuanian president ], Lithuanian parliament's unwillingness to combat corruption is a major issue in the fight against corruption.<ref>{{cite web|url=http://web.archive.org/web/20170923113513/https://www.15min.lt/naujiena/aktualu/lietuva/d-grybauskaite-ir-s-skvernelis-pries-lietuvos-gelezinkeliu-pinigu-kalykla-56-723520|title=D.Grybauskaitė ir S.Skvernelis – prieš „Lietuvos geležinkelių“ pinigų kalyklą - 15min.lt|date=23 September 2017|publisher=}}</ref> An anti-corruption program was introduced by the ] in 2011–2014.<ref name="NIT">{{cite web|title=Nations in Transit 2013- Lithuania|url=http://www.freedomhouse.org/report/nations-transit/2013/lithuania|work=Freedom House|publisher=Freedom House|accessdate=17 November 2013}}</ref> Tax evasion is prevalent in the Lithuania and total tax revenues (inc. social security contributions) was at 27.5% of GDP in 2012, the lowest in the European Union. According to Lithuanian president ], Lithuanian parliament's unwillingness to combat corruption is a major issue in the fight against corruption.<ref>{{cite web|url=http://web.archive.org/web/20170923113513/https://www.15min.lt/naujiena/aktualu/lietuva/d-grybauskaite-ir-s-skvernelis-pries-lietuvos-gelezinkeliu-pinigu-kalykla-56-723520|title=D.Grybauskaitė ir S.Skvernelis – prieš „Lietuvos geležinkelių“ pinigų kalyklą - 15min.lt|date=23 September 2017|publisher=}}</ref> An anti-corruption program was introduced by the ] in 2011–2014.<ref name="NIT">{{cite web|title=Nations in Transit 2013- Lithuania|url=http://www.freedomhouse.org/report/nations-transit/2013/lithuania|work=Freedom House|publisher=Freedom House|accessdate=17 November 2013}}</ref>

Revision as of 14:16, 29 November 2017

See also: Business scandals in Lithuania (2017)
Political corruption
Forms and concepts
Anti-corruption
Corruption by country
Africa
Asia
Europe
North America
Central America
South America
Oceania

Corruption in Lithuania is examined on this page.

Extent

% Percentage of Lithuanian population who Remarks References
95% consider corruption to be widespread
95% consider country's corruption to be a major problem
90% believe that corruption is widespread in Lithuania's government
73% experience same or increased corruption levels compared to 5 years ago A 2016 study. 31% experience same level of corruption, 20% higher and 22% much higher
72% believe that bribes help solving problems.
61% are prepared to pay bribes when needed.
48% believe that corruption is pervasive in the legal system.
46% would not report corruption due to belief that the corrupt individuals would not be punished.
45% paid bribes in the preceding year
39% consider prevalent tax evasion to be a major problem.
25% trust Lithuanian legal system
23% would report corruption
10% trust Lithuanian parliament

Summary

According to 2014 EU Anti-Corruption Report, Lithuania had the highest proportion of citizens who had paid bribes in the preceding 12 months of any EU country, with 95% of citizens considering corruption to be widespread and a major problem. In surveys of Lithuanian business people, corruption is highlighted as the main issue prohibiting economic development and international competitiveness. An 2016 investigation by Lithuanian government revealed that only 23% of Lithuanians would report corruption, and those who would not often believe that the corrupt individuals would not be punished. Same investigation from 2016 found that 73% of citizens experience same or increased corruption levels compared to 5 years ago. Lithuania has established a hotline for reporting corruption, but no major crimes have been reported in the first 5 years of its operation. Lithuania ranked 38th out of 176 countries in the 2016 Corruption Perception Index published by Transparency International (rising from 52nd place in 2009).

Tax evasion is prevalent in the Lithuania and total tax revenues (inc. social security contributions) was at 27.5% of GDP in 2012, the lowest in the European Union. According to Lithuanian president Dalia Grybauskaitė, Lithuanian parliament's unwillingness to combat corruption is a major issue in the fight against corruption. An anti-corruption program was introduced by the government in 2011–2014.

Annual survey done by Special Investigation Service (STT) revealed that 45% of Lithuania's citizens paid bribes in 2014. Lithuania's shadow economy was estimated to be 29% of the GDP in 2012. Society's trust in the political and legal system is low overall, a survey in 2015 showed that 25% of citizens trusted the Lithuanian legal system and 10% trusted the national parliament, Seimas. An international Gallup study found that 90% of Lithuanians believe that corruption is widespread in Lithuania's government. A study by Freedom House in 2013 claimed that corruption remained widespread in Lithuania and politicians regularly attempted to influence or undermine judicial decisions, compromising the independence of the courts. Despite solid judicial base, Lithuania’s law enforcement is very weak according to independent assessors. A 2016 corruption survey by STT found that majority of Lithuanian population perceives that corruption levels have increased in the past 1 year and past 5 year periods.

Impunity from corruption

There are numerous examples, recent and past, which strongly support that it is rare to be punished for corruption charges in Lithuania. In most cases, corrupt officials don’t receive any penalties. Even high-profile cases, which receive much media attention, often end without any punishments. In 2017, Lithuania had many prominent scandals, but they did not lead to any corruption charges:

  • Newspapers uncovered Mr. Gintautas Kėvišas, a former director of the Lithuanian National Opera and Ballet Theatre, had amassed significant wealth despite a meager 2000 EUR monthly salary. His assets included large areas of land, several houses and an apartment, as well as real estate in Altea, Spain. Kevišas had previously been involved in expensive and scandalous renovation of Lithuanian National Opera and Ballet Theatre. As of November 2017, there is no active investigation and Mr. Kėvišas has not received any punishment.
  • "Golden spoon scandal", involves Lithuanian military which bought large quantities of kitchen supplies at prices 7-8 times above the market price . The scandal became a major focal point in all of Lithuania's major newspapers, but as of November 2017, it did not lead to any dismissals or corruption charges. A report by 15 min found that corruption schemes continue even after "golden spoon" and other scandals of 2017. Public procurement deals are still won by companies with no employees or companies on the "black list".
  • In mid-2016, Eligijus Masiulis, leader of Lithuania's second largest political party at the time, was arrested with an alleged 106 thousand euro bribe. As of November 2017, no charges have been pressed against Masiulis.
  • In 2009, municipality of Kaunas built a dysfunctional outdoor toilet at a significantly inflated cost cost. In 2012, public servants involved in the toilet's procurement received prison sentences for recklessness, malfeasance, misuse of power and document falsifications. In 2014, all public servants suspected of corruption were cleared of charges and received compensations higher than their annual salary.
  • Suspicions that 20 million litas was lost by Kaunas municipality eventualy died out without any criminal charges.
  • In 2017, Rasa Kazėnienė revealed that Lithuanian prison procurement contracts are always won by the same handful of companies and some items are bought for prices up to 175 times higher than the market price. Lithuanian STT refused to start an investigation. Rasa went on the record with 15 min about direct and indirect threats which followed her revelations as well as circulating rumors that she will "be dealt with", persistent stalking, and flood of complaints against her.

Lobbying in Lithuania

Lithuania has a large number of shaddow lobbyists, some of whom are at the same time employed in the Lithuanian parliament. A study by 15 min revealed that many lobbying organisations are using governmental real estate in prime locations at no cost. There is very little insight in the sector, as there are no reporting or control regulations. Lobbying is widely spread and particularly common in sectors related to energy, farmaceuticals, construction, public healthcare and alcohol. Illegal conduct such as bribery is common. Lithuanian parliament has been unwilling to regulate lobbying.

Nepotism

Nepotism is a very visible problem in the Lithuanian society. It exists in all levels of society and especially in the public sector. Lithuanian language even has an expression about nepotism "Lithuania is a country of relatives" (Lithuanian: Lietuva yra giminių kraštas). Despite nepotism's spread, it is rarely discussed in the parliament or in any of the other governing structures.

Nepotism is deeply rooted within the public sector. There are known nepotism cases in many counties – Vilnius, Klaipėda, Šiauliai, Marijampolė, Kaunas, Telšiai etc. An investigation by Kauno diena found tens of municipality positions filled based on friendships or kinship. At least one fourth of employees of Marijampolė municipality have relatives filling local governmental jobs. There is little in the way of punishment for nepotism. In a 2016 study by STT, nearly half of public officials claimed that they have experienced pressure to employ somebody based on their political party membership. A politician of a small village bragged on her Facebook profile about ability to get jobs based on her political connections.

Practice of trading employment for favors, friendship or kinship is also prevalent in Seimas, Lithuanian parliament. Loreta Graužinienė, former speaker of the parliament, gave her hairdresser's daughter a job in the parliament. Member of the parliament Greta Kildišienė employed her photographer in the parliament. When Lietuvos rytas investigated the issue, it turned out that the photographer was receiving a salary, but nobody in the parliament knew who she was, what she did, and had not seen her. Parlamentarian Kestutis Pukas employed his lawyer's wife as his advisor.

Various forms of nepotism are also prevalent in public companies and organizations. Vice minister of Ministry of Social Security and Labour arranged employments in Prienai public retirement home for many of her close relatives. A 15 min study discovered that one in six employees of Registrų centras are relatives. Another study by Delfi found that 34% of employees of Kauno regiono keliai are relatives. Entire construction and road public sector was highly influenced by nepotism. Internal audit of public road builder "Automagistralė" revealed that some of the work was done in order to benefit the CEO, e.g. to build his mother's house.

Nepotism bands are also prevalent between public entities and their partners and suppliers in the private sector, which increases risk for corruption in public procurement. High percentage of unofficial and unannounced public procurement tenders is another contributing factor – percentage of unannounced public procurement contracts in Lithuania is 5 times above the EU average. When Lithuanian Railways investigated a possible 5M EUR damage through procurement contracts, they discovered that 40% of employees have close kinship bands to suppliers and partners. Suppliers and partners with kinship bands to Lithuanian Railways employees were consistently promoted and prioritized. Many of the public procurement scandals revolving about inflated prices involved nepotism – Šilainių hospital contracts, Kaunas prison contracts, the many scandals surrounding Gintautas Kėvišas family, etc.

Famous cases

Alcohol box money case

In May of 2016, Masiulis alcohol box money case shook Lithuania. Eligijus Masiulis, leader of the Liberal Movement, a prominent political party in Lithuania, was arrested with 106 thousand euros in cash stuffed into an alcoholic beverage box. Bribery suspicions initiated a criminal investigation. MG Baltic, a Lithuanian investment firm, is suspected of giving the bribe. During a house search, another 250 thousand euros in cash were found in Masiulis apartment. In September 2017, the Liberal Movement and Labour Party were additionally named as suspects in the continuing investigation. As of November 2017, no charges have been pressed against Masiulis.

Kaunas golden toilet case

In 2009, municipality of Kaunas (led by mayor Andrius Kupčinskas) converted a shipping container into an outdoor toilet at a cost of 500'000 litas (around 150'000 euros). It also required 5'000 LTL (1'500 EUR) in monthly maintenance costs. At the same time when Kaunas "golden toilet" was built, Kėdainiai tennis club acquired a very similar, but more advanced solution for 4'500 EUR. Because of the inflated cost, Kaunas outdoor toilet was nicknamed "golden toilet". Despite the investment, the "golden toilet" was dysfunctional and remained closed for years. It was subject of a lengthy anti-corruption investigation. Municipality even considered to demolish the building. In 2012, public servants involved in the toilet's procurement received prison sentences for recklessness, malfeasance, misuse of power and document falsifications. In 2014, all public servants suspected of corruption were cleared of charges and received compensations, which pushed the total construction cost to 352'000 euros.

  • Kaunas "golden toilet" Kaunas "golden toilet"

Lidl police headquarters case

In 2016, Lidl bought an abandoned building in the outskirts of Vilnius with intentions to build local headquarters. Soon after the purchase, Lithuanian Union of Architects (Lietuvos architektų sąjunga) and Lithuania's ministry of culture declared the building ruin to be a national treasure freezing Lidl's plans in the process. There have been speculations and allegations that such actions were a covert attempt to extort bribes. After a public dispute, where Lidl placed formal complaints to various branches of Lithuanian government, including to Lithuania's president, and after several rounds of legal battles, Lidl settled the case out of court in early 2017.

Gallery

Abandoned former police headquarters in Vilnius, which were later declared to be Lithuanian architectural treasure.

Examples post-2016

  • In 2016, a Lithuanian public energy company came under fire for purchasing supplies well above the market prices. As of September of 2017, no charges have been brought against any employees of the company.
  • In 2016, ŽŪMPRRA, an agency providing food support to the Lithuania's poor and financed by the EU bought food supplies significantly above the market price.
  • In 2016, several politicians in Kaunas, Lithuania's second largest city, were sued by the new city administration for having fictional employment - receiving large salaries without ever coming to work.
  • In 2016, a politician in Kaunas was arrested under suspicion that his newly built house was a bribe, provided to him by a government contractor.
  • In 2017, the head of state-owned Šilainiai clinic, one of the largest clinics in Kaunas, was sued for corruption. Under his management, the clinic had signed several contracts under conditions favoring a company managed by his son.
  • In early 2017, a scandal erupted when newspapers uncovered that Gintautas Kėvišas, a director of the Lithuanian National Opera and Ballet Theatre with a 2 000 EUR salary, had amassed significant wealth, including large areas of land, several houses and an apartment, as well as real estate in Altea, Spain. Kevišas was involved in scandals surrounding an expensive renovations at the theatre. He was dismissed from his position, although, as of September 2017, there have not been any charges laid against him.
  • In 2015, „Start Vilnius“, a municipal agency tasked with attracting investment, allowed one of its employees to claim a favourable plot of land in Vilnius. In 2016, the same agency was again accused of handing over a large plot of land in central Vilnius to a private company for 15 000 EUR.

Examples pre-2016

  • Arturas Zuokas, former mayor of Vilnius was convicted for trying to bribe a fellow politician. Criminal record was later removed, although the Zuokas was not declared innocent.
  • In 2004, former Lithuanian president Rolandas Paksas became the first president in Europe to be impeached. He was impeached on multiple corruption charges: for giving Lithuanian citizenship to his Russian donor Jurij Borisov, for passing secret information to Jurij Borisov and for pressuring a private company to hand over ownership rights to people close to Paksas
  • Lithuania is a major receiver of EU funding and there have been several high profile cases of EU funding embezzlement
  • There are suspicions that project to close Ignalina Nuclear Power Plant involves significant embezzlement and money laundering

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